Status Report

Investments, Depreciation and Amortisation

In 2018, the Kuehne + Nagel Group invested a total of CHF 315 million (2017: CHF 225 million) in fixed assets. Investments in properties and buildings amounted to CHF 73 million (2017: CHF 48 million), of which the most substantial amount into a new large-scale pharma logistics facility in Moehlin, Switzerland and into the construction of a new office building in Bremen, Germany. CHF 242 million (2017: CHF 177 million) were invested in other fixed assets, operating and office equipment.

All capital expenditure in 2018 was financed through operational cash flow.

In 2018, the following major investments were made in properties and buildings:

Investments in fixed assets / depreciation

Location

CHF million

Centres

Moehlin, Switzerland

19

Construction of a large-scale pharma logistics facility

Bremen, Germany

17

Construction of a new office building

Dubai, UAE

6

Extension of a logistics centre

Derrimut, Australia

4

Extension of a logistics facility

Others

27

Total

73

The allocation of investments in other fixed assets, operating and office equipment by category is as follows:

CHF million

2018

2017

Operating equipment

78

74

Vehicles

27

13

Leasehold improvements

83

46

IT hardware

38

34

Office furniture and equipment

16

10

Total Group

242

177

The allocation by region is as follows:

CHF million

2018

2017

EMEA

147

116

Americas

68

40

Asia-Pacific

27

21

Total Group

242

177

The allocation by business unit is as follows:

CHF million

2018

2017

Seafreight

26

19

Airfreight

22

18

Overland

34

23

Contract Logistics

160

117

Total Group

242

177

Depreciation and amortisation in 2018 amounted to CHF 222 million and was allocated in the income statement as indicated in notes 26 and 27 to the Consolidated Financial Statements.

The Group continued to operate an asset-light business model and invests only into strategically important locations with high demand for state of the art logistics space.